The buyback size is Rs 3,500 crore, representing 16.39% and 13.62% of the aggregate of the fully paid-up equity share capital and free reserves.

People walk in front of the HCL Technologies Ltd office at Noida.(Reuters photo)

India’s fourth largest software services firm HCL Technologies said on Wednesday it will buyback shares at Rs 1,000 apiece, a 17% premium over current trading price.

The company is proposing an offer for buyback of equity shares for cash at a price of Rs 1,000 per equity shares on a proportionate basis through tender offer process, HCL Technologies said in a regulatory filing.

The buyback size is Rs 3,500 crore, representing 16.39% and 13.62% of the aggregate of the fully paid-up equity share capital and free reserves as per the standalone and consolidated audited accounts of the Company for the financial year ended March 31, 2016 , it added.

Buyback offer price is about 17% higher than the current trading price of the stock at Rs 852.35 per share.

HCL said Letter of Offer will be to equity shareholders of the company as on record date of May 25.

Opening and closing dates of buyback programme, which received shareholder approval last month has not yet been announced.

The Indian IT companies have been under pressure to return excess cash on their books to shareholders through generous dividends and buybacks.

Earlier this month, India’s largest software services firm Tata Consultancy Services (TCS) announced its Rs 16,000- crore mega buyback offer. It is currently under way.

TCS rival, Infosys has also announced its capital allocation policy to return up to Rs 13,000 crore this financial year through dividend and/or buyback.